Forex Cards: All You Need to Know

When you have to travel overseas on a frequent basis, then it can easily become a hassle to arrange for different types of currencies. This is where a forex card can be of great help.

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What is a Forex Card?

A forex card is a prepaid foreign exchange card which you can load with different types of currencies. So, you can easily travel to other countries and make payments in their local currencies with a single forex card depending on the amount loaded.

What are the different types of Forex Cards?

Forex cards usually come in two formats:

• Single currency forex card: This type of forex card can be loaded with only one currency.
• Multi-currency forex card: This type of forex card can be loaded with several currencies.

How can you apply for a forex card?

Different banks offer different types of forex cards. The rules and regulations for the same may also differ. However, in most cases, you would need to submit your passport details and FormA2 in addition to a forex document as per the Foreign Exchange Management Act regulations.
The following are some of the main points to remember about forex cards:

• Forex cards are cheaper in comparison to buying a currency directly due to better conversion rates and lower service fee. They are also widely accepted across the globe.
• Due to their prepaid nature, forex cards are great if you want to travel on a budget and keep your expenses under a limit.
• A currency loaded into a forex card is based on the exchange rate of the particular day you upload it. So, you don’t have to worry about the exchange rate fluctuations when you actually need to use the card for payments.
• Present-day forex cards come with many security features such as PIN verification and security chips, etc.